As announced on Google’s “Inside AdWords” Blog, theTop ad placement formula changes.
Today’s formula considers an ad’s Quality Score and actual CPC.
The new formula will still strongly consider the Quality Score but instead of actual CPC, it will consider an ad’s maximum CPC.
The actual CPC is partly set by the bidding behavior of the other advertisers. So your position would be influenced by something that you cannot control. The maximum CPC is set by the advertiser.
Google also expects an increase of the quality of the top ads. You might want to read Google’s FAQ on this topic.
On the other hand this might be just another way for Google to make even more money. Larger businesses will spend more dollars to get the top position. Google will be charging maximum CPC for top placements. It seems to me that the more money you spent, the better the placement - no matter how smart you optimize your ads.
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